Today, individuals are increasingly looking for diverse options to strengthen their retirement income. In addition to Social Security, potential income sources include:
Pensions. Though increasingly rare in the private sector, some occupations still provide them.
Defined contribution retirement accounts, such as 401(k) plans, which may be offered through an employer or managed individually.
Investments. Dividends and interest from securities can help supplement retirement income, and retirees may also realize capital gains by selling assets.
Insurance. Some permanent life insurance policies offer cash value, dividends and policy loans, which may serve as a supplemental, tax-efficient source of income.
Annuities. These can provide guaranteed income through a variety of products, including fixed, variable and indexed annuities.
Real estate. Rental properties may generate income, while downsizing a home can free up equity. Some retirees also use home equity loans or reverse mortgages.
Continued work. For some, working during retirement provides both income and a sense of purpose.
In addition to diversifying income sources, it is important to distinguish between guaranteed and variable income. Guaranteed income can help cover essential expenses, while variable income may help address inflation and support one’s desired lifestyle.
For additional resources, visit kofc.org/familyfinance.
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BRIAN O'CONNOR II is an internal wholesaler for Field Management and a member of St. Thérèse of Lisieux Council 8013 in Trumbull, Conn.
*The primary purpose of life insurance is to provide a death benefit. Cash value growth is gradual and may take time to accumulate. Loans and withdrawals will reduce the policy’s cash value and death benefit, may result in a taxable event, and could cause the policy to lapse if not properly managed. Policy loans accrue interest. Guarantees are based on the claims paying ability of the issuing insurance company.








